Electronic Arts to buy maker of 'Titanfall" videogame series

Electronic Arts Inc.
EA, -2.40%
announced Thursday that it will acquire Respawn Entertainment, a videogame studio known for the "Titanfall" series of games. The company said it has agreed to pay $151 million in cash for Respawn, along with $164 million in equity awards that will vest over a four-year period. There are additional incentives in the deal that could be realized through performance milestones, capped at $140 million, and the deal is expected to close around the end of the year. EA and Respawn already work closely together, with EA publishing both of the "Titanfall" titles and the two companies working on a videogame based in the "Star Wars" universe, EA said in its announcement. "We've seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset," EA Chief Executive Andrew Wilson said in the news release. EA shares were quiet in late trading following the announcement, but have gained 42.1% so far this year, while the S&P 500 index
SPX, -1.42%
has increased 15.9%.

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